Donald Trump is escalating his threats to increase tariffs on imports if he wins a second term in the White House, reviving fears of renewed trade wars that hit the global economy during his presidency.
The Republican candidate, seeking to win blue-collar votes in swing states pivotal to November’s presidential election, has doubled down on his protectionist rhetoric, delivering blunt warnings of tariffs to US trading partners including the EU.
On Saturday, Trump went further, promising tariffs of 100 per cent on imports from countries that were moving away from using the dollar — a threat that could engulf many developing economies too.
“I’ll say, ‘you leave the dollar, you’re not doing business with the United States. Because we’re going to put a 100 per cent tariff on your goods,’” he said at a rally in Wisconsin.
“If we lost the dollar as the world currency, I think that would be the equivalent of losing a war,” he told the Economic Club of New York on Thursday.
The who’s who of nefarious countries: “Hey US? Yeah some of us have concerns that maybe your currency can be used as a weapon against us, so we’re gonna do a whole bunch of political showboating to try to make a point. We’re not motivated enough to actually do something, though.”
DJT: “I’ll give you something to be concerned about. Our currency that I’m ostensibly protecting the use of will be totally useless for you!”
It’s like he doesn’t realize that the US dollar is the world reserve because of the stability and reliability of it. We got there using carrots, mostly, and he thinks the stick is a good idea…
I mean, its the World Reserve Currency because the world runs on Petroleum and the major petroleum producers all trade in dollars. One of the big threats to USD dominance is renewable energy, as you don’t need to pay a Saudi in paper issued by the US Mint in order to power your house or run your car.
Ok, but why do all the major petroleum producers trade in USD? Yes the US buys a lot of oil, petrol, and natural gas, but the trading volume isn’t that atypical of other wealthy, large geographic regions. They use it because it’s stable, ubiquitous, and almost always accepted. If it’s not stable or ubiquitous anymore due to these sorts of sanctions, why would the petrol producers keep using it?